Mid FY 17 Roadshow. For personal use only. Disruptive Competitive Advantages In the world of compliance. Making BIG Data small

Transcription

1 For personal use only Mid FY 17 Roadshow Disruptive Competitive Advantages In the world of compliance

2 Notice: Forward looking statements The purpose of the presentation is to provide an update of the business of Kyckr Limited ACN (ASX:KYK). These slides have been prepared as a presentation aid only and the information they contain may require further explanation and/or clarification. Accordingly, these slides and the information they contain should be read in conjunction with past and future announcements made by Kyckr Limited and should not be relied upon as an independent source of information. Please refer to the Company s website and/or the Company s filings to the ASX for further information. The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside Kyckr Limited s control. Important factors that could cause actual results to differ materially from assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to assumptions made and Kyckr Limited s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution. This presentation should not be relied on as a recommendation or forecast by Kyckr Limited. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. 2

3 Introduction To Kyckr (ASX:KYK) Founded in 2008 in Waterford, Ireland as Global Business Register To provide real time access to primary source and reliable corporate data, directors, shareholders, and UBO s Single point of access to 180+ official sources (and growing) > 4000 customers across all 3 service models IPO 7 th September 2016 Founders and executive escrowed for 2 years. In the top 27% performing IPOs in 2016 and 5 th in its category (according to the ASX) Trading at a discount to a number of its peers on a price to book basis - Independent Investment Research Report, Reference Number Shares on issue 100,962,186 Share Price Traded to $0.315 Mark Cap (based on SP $0.225) Free float (end of Feb) Cash at 31 st Dec 16 Cash raised at IPO AU$ AU$21.7m 41% AU$3.8m AU$5.2m 3

4 Timeline Further 30 register added, total over 180 MYDATA Alliance CiiGroup revenue underway Startup mode Launched award wining blockchain platform 2015 Bank of Ireland First Automation client John Van Der Wielen, Patrick Curry OBE appointed as NED CitiGroup engages use globally 2013 Kyckr Office use by international banks New Bus Dev in Europe and APAC 2010 Launch GBRDirect.com site Connected to 17 European countries 7 th Sept 2016 IPO on ASX Dec Feb 2017 Pre-IPO Post-IPO 2008 Connected to over 150 registers and other sources globally Connected to over 180 registers and other sources globally 4

5 Board & Executive Team Mr. Van Der Wielen - Chairman. Mr. Cassidy Managing Director Mr. Pechmann CFO, Company Secretary o Over 30 years experience across banking, wealth management, investments and insurance o Currently director of Friends Provident International, Lombard International Assurance, Partners Life New Zealand o Senior advisor for Blackstone Group Mr. Cronin Founder, Director, Regulatory Development o o o Co-founder of Kyckr. Property developer Professional Rugby Union player, representing Ireland internationally. o Over 25 years working in banking, M&A and Technology and Digital. o Citicorp, Price Waterhouse Coopers, Siemens, Consolidated Press Holdings and Publishing Broadcast Limited. o Worked in Europe, US, and APAC. Mr. Leslie Joint Founder, Director, Head of Innovation o Co-founded of Kyckr o Founder of Sedicii, - online identity protection. o Mentor with Enterprise Ireland o Dell in Japan. o Chartered Accountant and Chartered Company Secretary. o KPMG & BDO in audit, business advisory and corporate governance roles o Member of Institute of Chartered Accountants, Australia and New Zealand and is an Associate of the Governance Institute of Australia. Mr. Wong OA NED Mr. Curry OBE NED Mr. Walsh - NED o Founding Chairman of KYK o Investment banking and stockbroking industry for 35 years. Deputy Chairman of Prima BioMed Limited. o Philanthropic activities include boards of UNSW Foundation, Children s Medical Research Institute, President and Honorary Life Governor of the Physics Foundation at the University of Sydney. o o Contributor to the UK Government on Distributed Ledger Technologies: Beyond Blockchains. Enabling the adoption of blockchains by government, industry and authorities o Managing Director of Spiecapag Australia, specialising in the delivery of onshore infrastructure for the oil, gas and water industry. 5

6 What is KYC (of businesses) about Information examined 1. Correct legal name, address of company, registration status 2. Directors names and addresses 3. Beneficial Owners & UBO structures AML (Anti-Money-Laundering) Obligations CTF (Counter Terrorism Financing) 1. Regulator (financially and criminally punitive) 2. Protect your business against fraud and money laundering 3. Protect society against fraud and money laundering Incumbent Solutions 1. People based processing 2. Case Management front ends 3. Data sources (D&B, Veda, Experian) 4. Time Foreign Account Tax Compliance Act 6

7 Size of the challenges Since the GFC US banks alone have incurred compliance fines of US$119 Bn whereas the total global market for compliance is thought to be US$70 Bn Onboarding time had increased by 22 percent from last year and is expected to go up another 18 percent next year 89% of corporate customers said they did not have a good experience with their banks KYC processes and 13% have changed banks as a result 39% wanted automated extraction and data capture for KYC as their number one priority 75%-85% of the alerts that they remediate on a daily basis are false positives while up to 25% are reviewed by level-two senior analysts On average 11% of corporate customer books are deregistered business with live products GLOBAL MONEY LAUNDERING TRANSACTION ARE ESTIMATED TO BE 2% TO 5% OF GLOBAL GDP WITH LESS THAN 1% SEIZED 91% of overseas companies owning London land titles are registered in secrecy jurisdictions 140 banks had the following challenges o 53% said collecting the right information while mainatining a good customer experience o 60% regardiing time watsed with mistakles and rekeying for KYC o 55% presenting right information to clientds at the right stage Only a % of 100 legal firms screen clients for money laundering activities on a continuous basis, regardless of risk profiles Some corporate books have the majority of the name and address wrong for their customers and as such don t adhere to their banking license obligations 7

8 The backbone to our capabilities Global Coverage Connected to over 180 registers and other sources globally Most Authortative & Legally Compliant Sources Money Laundering Hot Zones Company Watch Company Watch notifies you of changes to Company Information Most compliant sources Company Info Director Info Shareholder Info Changes For personal use only Kyckr KYC Intelligence Decrease False positives Improved Conversion Decrease Risk Improve Revenue Innovation Integrated corporate KYC Blockchains Platform Agnostic (bitcoin, Ethereum, Credits). 8

9 Capabilities Evolution Intelligence built from subject matter expertise + compliant source + investment in business development Winning formula KYC Intelligence where tech is the enabler API based functional access to Company Data Portal Access to Company data Source of Company Data by being connected registers - Utility 9

10 KKI for company KYC Multiple countries, multiple sources Company A Shareholde r 1 Company B Shareholder 2 Company C Shareholder 3 Company D Kyckr KYC Intelligence (KKI) Shareholder 4 Director w Director x Director y Director z Directors Info 10

11 Business Identity Theft 75% of mid to top level companies have fallen victim to corporate theft in the last year Kyckr a node on your blockchain network of choice (also accessible through an API to the blockchain network). Used to vet corporate identity in KYC, on a per transaction, supply chain or other needs to protect against business identity theft. Normal solutions such as APIs are not sufficient to support future needs. Blockchains are considered to be the right architecture Kyckr Blockchain Solution - Platform Agnostic Award winning, globally Kyckr KYC Intelligence (KKI) Corporate Identity Kyckr interface Blockchain platform agnostic Other blockchain platform CORPORATE CUSTOMERS 11

12 Kyckr Service & Business Models Automation opportunities July 17 Office Jan 17 Exclusively promote Kyckr Office to mid level market users June 17 Exclusively promote Kyckr Office to mid level market users Sept AU$1m recurring 2014 & before Exclusively promote Kyckr s international data end of April 17 Kyckr Solo B2C Margin up to 60% Company Watch and other value added services majority profit Web based access Credit card Filings, Company Watch and other services customer Kyckr Office B2P, B2C, B2B Margin from 25% to 40% Company Watch and other value added services - majority profit Web based access Account based post paid billing Filings, Company Watch, Directors, Credit and soon UBOs Partner solutions (e.g. accountants, lawyers, other sectors) 70 + customers Kyckr Enterprise B2B, B2P Margin 10% to 25% Company Watch and other value added services - majority profitindustrial use Automated KYC o Onboarding o Cleanse & Remediate o Company Watch o UBO soon Through our APIs and or Blockchain 12

13 Performance Half year Highlights Half year revenue grew strongly up 50% on the same half for FY16. Unaudited AU$760k Does not yet include revenue from: a. Citigroup compliance users in the APAC, Europe and Americas. b. MyData exclusive alliance Focus of the Company now turns to business development and revenue growth A significant pipeline of advanced opportunities exist for the Company s technology and product suite 13

14 Performance Outlook Short term focus & Pipeline Cost based requires minimal increase ongoing and revenue positioned to grow. Greater sales, reputation and subject matter expertise. Pipeline is clearer and more focused. Within the world of AML Data is now the elephant in the room and all roads are leading to the registers as being the source with provenance. Partners are strategically becoming more important to us and will lessen the risk of our B2B capabilities Operations We have recently gone through some important organisational recalibrations to ensure that Delivery meets the pressure from Business Development. CitiGroup a. Building out revenue b. Winning more valuable Enterprise projects MyData a. Building out revenue b. Sourcing more valuable Group Account and Enterprise with Partners Closing 2+ further global clients Next 180 days Building revenue & cash from top global clients Continue to source other global clients Attracting strategic global partner Developing cash run to have sight of being self sufficient Next 360 days 14

15 Example benefits to clients 1. Cleanse and Verify Challenges at start of project Kyckr Solution Benefits to client Verifying which records from 890,000 bank records were real Matched company records to company registry information 97,000 identified to get project underway Separated out records that required manual verification Identified duplicates, de-registered businesses, etc.. Ability to commence project quicker Significant time & quality improvements Better adherence to AML policies and procedures Redefined best practices 2. On-Board & KYC DD Provision of corporate data in digital form Kyckr Solution Benefits to client Fundamental to On-Board of new and Due Diligence of existing customers Provision of Corporate Data in digital form. Integrated in KYC DD case management tools Integrated into On-Boarding Platforms Decreases costs, time and risk in KYC DD Provision of data from primary best practices from AML and CTF 15

16 Example benefits to clients 3. Company Watch Maintaining accuracy of client data post KYC DD Requirement to ensuring client data is accurate and up to date Kyckr Solution Companies placed on Company Watch, alerts to any changes associated with new filings Benefits to client Decreases costs, time and risk in KYC DD Greater veracity in KYC DD risk analysis Reduce false positives Reduces need and cost for refresh 16

17 Client Endorsements Kyckr is a critical part of the KYC process. They supply real-time company register information during the customer on-boarding process and, through their Monitor product, provide continuous updates throughout the lifecycle of the customer relationship. They also cleanse and update existing data and keep this data current using Monitor. Quality data is imperative to the efficacy of our KYC process. The use of GBR (or Kyckr ) information at on-boarding and throughout the lifecycle of the customer relationship allows us to maximise the effectiveness and efficiency of our on-boarding, on-going due diligence and customer engagement processes and helps streamline our KYC/AML regulatory obligations. Group Head of AML, CFT & Sanctions Group Regulatory, Compliance & Operational Risk 17

18 For personal use only 1. PROVENANCE OF INFORMATION USED TO MAKE DECISIONS 2. MAINTAINING A REAL TIME VIEW OF CORPORATE CUSTOMER 3. AUTOMATION WHERE POSSIBLE Contact David Cassidy Managing Director info@kyckr.com